Saudi Arabia’s investment minister has said the kingdom regards Italy as a useful ally to help it deliver green energy and fuels – including hydrogen produced with renewable power – to Europe.

Speaking at a conference in Milan in early September, Minister Khalid al-Falih explained that Saudi Arabia has embarked on a multi-year energy strategy to diversify away from its traditional oil and gas business and grow its production capacity for low-carbon products. The search is now on for allies who could facilitate the export of these products and Italy is the partner of choice regarding the European continent.

Saudi Arabia is positioning itself as a key supplier of blue and green hydrogen. While green hydrogen is produced by splitting water through electrolysis using renewable energy, blue hydrogen results from a process of steam methane reforming in which CO₂ emissions are captured and stored.

Minister Khalid al-Falih stressed that investment in infrastructure, including ports and pipelines, would be needed to ensure the delivery of green hydrogen to Europe and could include partnerships with other European countries to establish a strong, integrated distribution network. He said he would be travelling to other European countries, including Germany, to find customers and partners.

In May 2024, the Italian government signed a cooperation agreement with Germany and Austria on the development of a pipeline to transport hydrogen from the southern Mediterranean to northern Europe. The announcement was celebrated as a concrete step in the European Union’s strategy to secure renewable hydrogen supplies by 2030 to help decarbonise its most polluting industries.